EPIC TRADE OF 2010 (so far) = NUVA

Order: 13:25:57 (2 sec fill)

Entry 13:25:59 $31.2699

Scale Outs:

1/2: $36.92

1/4: $41.89

1/4: $41.18

Suffice to say, I am done for the day. This is a news driven power spike that I was fortunate to catch. I don't regret getting "only" 1,000 shares because I stick to my rules on position sizing specifically for intra-day spikes.

1st Target: $31.68 (high of day prior to spike)

2nd Target: $33.63 (100-day MA, kept spiking higher)

3rd Target: $37.08 (200-day MA, I always cut here)

4th Target: $40.54 (November highs - sell everything at this point)

...

Charts are for "Idiots"? Think again.

BREAKOUT SETUPS

I like to scan the 52-week highs list regularly to see if there are some sweet swing setups. I did find a few that 1) broke and closed at or above resistance, 2) all made 52-week highs. It is an obvious sign of strength when stocks are breaking out to new 52-week highs while the market remains in a neutral range. In addition, follow up checks on a stock's sector group is encouraged as you may find those stocks mimicking the same patterns.

First chart is a 3-mo of the SPX. It is still caught between the 50/100-day MAs.

CAUGHT BETWEEN MOVING AVERAGES

The general market as well as most sectors are caught between MAs. For the SPX, it's the 50/100-day. For the XLV ,it's the 20/50-day. For the XLU, it's the 20/100-day. They are all different. I expect more chopping today as the market continues to test the 50-day MA. On the 2-mo/60-min SPX chart, it's clear that we are back inside the neutral range that was created from December. Look for breaks above the 50-day or below 1102. As always, individual stocks should be carefully selected based on the best setups.